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Business News/ Markets / Stock Markets/  Blue Star stock spikes over 9% to all time high after Q2 net profit jumps 66%
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Blue Star stock spikes over 9% to all time high after Q2 net profit jumps 66%

The company reported a consolidated net profit of ₹70.77 crore in Q2FY24, an improvement of 66% over Q2FY23's net profit of ₹42.64 crore.

Following the company's impressive Q2FY24 performance, the stock in today's session opened with a 6.53% gap up at ₹929 apiece and rallied further to hit an all-time high of ₹955 apiece, up by 9.51%.Premium
Following the company's impressive Q2FY24 performance, the stock in today's session opened with a 6.53% gap up at 929 apiece and rallied further to hit an all-time high of 955 apiece, up by 9.51%.

Shares of Blue Star, a consumer durable firm, began Tuesday's trading session strongly as investors responded positively to the company's Q2FY24 performance. The company released its Q2FY24 earnings post-market hours on Monday, with a 19.5% surge in its consolidated revenue from operations at 1,890 crore. In comparison, during the same period last year, the company recorded a revenue of 1,582 crore.

The revenue from its electro-mechanical projects & commercial air conditioning systems segment, which accounts for over 55% of the company's total revenue, increased by 12.1% to 1,077 crore in Q2 FY24, as compared to 961.22 crore in Q2 FY23.

In the Electro-Mechanical Projects business, while the slowdown and delay in order finalizations in the commercial buildings sector continued during the quarter, inquiries and order finalizations from factories, data centres, railway electrification, water MEP, metro railway, and healthcare sectors remained buoyant. The commercial air conditioning business continued to witness traction from the industrial, healthcare, and retail sectors, the company said in its earnings report.

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Further, the revenue from its Unitary Products segment grew by 38% to 729 crore in Q2 FY24 as compared to 528.69 crore in Q2 FY23, while the revenue from the professional electronics and industrial systems segment declined by 9.4% to 83.70 crore in the quarter compared to 92.38 crore in Q2 FY23 due to a slowdown in the data security business.

The operating profit (PBIDTA excluding other income) for the quarter improved significantly to 122.69 crore (6.5% of revenue) compared to 85.59 crore in Q2FY23 (5.4% of revenue), driven by enhanced scale and higher gross margins, according to the company's earnings report.

On the bottom line, the company reported a consolidated net profit of 70.77 crore in Q2FY24, an improvement of 66% over Q2FY23's net profit of 42.64 crore. For H1FY24, the company's consolidated net profit reached 151.14 crore, a 31.75% surge compared to a net profit of 116.99 crore reported in H1FY23.

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"The company continues to invest in expanding manufacturing capacity, accelerating R&D, and digitalization as part of its growth plans and profitability improvement programmes. Consequently, the capital employed as of September 30, 2023, increased to 2069.62 crores as compared to 1441.16 crores as of September 30, 2022," the company said.

Blue Star ended the quarter with a net cash position of 285.85 crore as compared to a net borrowing of 392.62 crore as of September 30, 2022.

Following the company's impressive Q2FY24 performance, the stock in today's session opened with a 6.53% gap up at 929 apiece and rallied further to hit an all-time high of 955 apiece, up by 9.51%. At 10:00 AM the stock was trading with a gain of 7.50% at 937.50. 

The company shares in the current year have performed exceptionally well, delivering a return of 52.46%, the highest yearly performance since CY17.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 31 Oct 2023, 10:15 AM IST
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